ReportonReformingInvestmentApprovalImplementationProcedures.ppt

Release of the Report on ‘Reforming Investment Approval Implementation Procedures, Part-II’(Downstream Issues - Implementation and Operation) By Shri Arun Shourie Minister of Commerce Industry, Disinvestment Development of North Eastern Region 17.12.2002 ‘….We may have done away with the License Quota Raj but the Inspector Raj still survives. Many entrepreneurs- especially those in the small and medium sectors- are routinely harassed and humiliated under the Inspector Raj. This must end….’ Hon’ble Prime Minister In a recent speech Background In a major initiative, a Committee was set up to suggest simplification in procedures for investment approval and implementation of projects; The Report is in two parts: Part-I: Upstream issues, i.e., from the stage of conceptualization of projects till investment approval; presented in May 2002; Part-II: Downstream issues, i.e. from the stage of investment decision till implementation of projects and their operational phase; presented in November 2002. The Process A Sub-Group constituted for looking into downstream issues; Extensive consultations and interactions with Ministries Business Organizations. The Sub-Group also referred to: Case studies and synthesis study commissioned by PMO; Base papers by Ministries/Departments; Other studies and reports; Special Acts and State level initiatives; (Annex-III refers) Major Bottlenecks Identified in Implementation and Operation of Projects Plethora of laws regulate projects in various sectors; Cumbersome procedures prescribed under various laws/rules/ regulations, etc.; Lack of information on procedural requirements; Inadequate transparency in administration of approval; Multiplicity of agencies responsible for approval administration. Major Bottlenecks Identified in Implementation and Operation of Projects (contd.) Regulatory framework and ground level hassles; Handling of approvals at State level; Greater difficulties encountered in : Environment and forest clea